The London retailer reported a pre-tax profit of £84.9 million for the year ending January 31, bouncing back from a £34.3 million loss the year before. That loss was linked to difficult trading conditions and £62.5 million in compensation payments to victims who came forward through a redress scheme related to Mr Al Fayed’s 25-year ownership of the business. Harrods returns to profit as sales rise at its Knightsbridge flagship store (Image: PA)Finance chief Geoff Weaver said: "While global macroeconomic and geopolitical uncertainty continues to shape the operating environment, Harrods remains cautiously optimistic. The company said that more than 100 victims have received compensation, and over 260 individuals have engaged with the scheme. The positive results come as rival retailer Harvey Nichols warns it may have to "cease trading" within a year unless it secures fresh investment.